JAKARTA (Yosefardi) – Huawei Tech Investment Co Ltd could hold 9% stake in PT Bakrie Telecom Tbk (BTEL) following the approval on the BTEL’s proposal for debt settlement through mandatory convertible bond-A/MCB-A scheme.
While PT Solusi Tunas Pratama Tbk (SUPR) and PT Profesional Telekomunikasi Indonesia (Protelindo) would get 5% stake each in BTEL, a CDMA operator with Esia brand.
BTEL’s debt to Huawei amounts US$145 million while debt to SUPR and Protelindo is Rp1 trillion each. BTEL will have to settle its debts, Rp11.31 trillion in total, to creditors within next 18 months.
The debts amount is equal to 53% BTEL shares. The conversion price of MCB-A is set for Rp200 per share. The MCB-A covers 70% of BTEL’s total debt.